On Friday, the State Bank of Pakistan (SBP) urged exporters to repatriate their export earnings to Pakistan by April 30, aiming to enhance foreign exchange inflows in the market.
SBP said in a statement:
In view of the representation received from various stakeholders, it has been decided that exporters who are able to bring their delayed export proceeds to Pakistan by April 30, 2023 will not face any deductions and their export proceeds will be converted into PKR and released to them in a normal fashion.
Additionally, the banks will release any amounts previously held from the exporters. If export receipts are obtained after the specified timeframe, the authorized dealers (banks) will change the export proceeds based on the current market exchange rate, deposit them into the exporters’ account, and put a hold on the amount received by the exporter.
According to the SBP, if export receipts are received fully or partially after the stipulated period, banks will convert the export earnings to the current market exchange rate and deposit them into the exporters’ accounts. Additionally, the banks will place a hold on the number of export proceeds received by the exporter.
If there is a one-month delay, a 3% hold will be placed, while a 6% hold will be placed if there is a 31 to 60-day delay. A hold of 9% will be placed on the export proceeds if there is a delay of more than 60 days.
FEOD (Foreign Exchange Operations Department) shall file a complaint to Foreign Exchange Adjudication Department (FEAD), SBP-BSC with respect to delay in realisation of export proceeds for all reported cases.
Afterward, the authorized dealer will transfer the penalty amount, imposed by FEAD, to the SBP from the funds held under the lien and release the remaining balance to the exporter. If FEAD does not levy any fine on the exporter, the entire amount held under the lien will be released to them.
The inflow of export proceeds will aid in augmenting the supply of dollars in the foreign exchange market, thereby easing pressure on the Pakistani rupee. The SBP has emphasized the importance of strong export inflows as a complement to the effective shock-absorbing role of a flexible exchange rate.